Franchises in Brazil Are 90% National and Generate 30,000 Jobs

    With an annual turnover of US$ 13.7 billion (32 billion reais), franchises currently account for 1.7% of the total wealth produced in Brazil, referred to as the Gross Domestic Product (GDP).

    And the sector continues to grow: It expanded 9% last year and is expected to grow 10% this year. These figures were furnished by the Brazilian Franchising Association (ABF).


    Contrary to popular belief, 90% of the franchises are Brazilian. They generate 30 thousand direct jobs each year, on average, and there are 804 networks operating in the country, with 59 thousand sales or service outlets.


    Globally, Brazil is ranked sixth in this market, after the United States, Japan, China, the Philippines, and Canada.


    For Ricardo Toledo de Camargo, executive director of the ABF, the franchise market is advantageous and more secure than that of the independent businessman.


    He explains that, while conventional businesses have a 45% success rate, the annual failure rate for franchises is only 2.5%.


    “Investment in a franchise is naturally much more secure, in consequence of all the organization the firm is required to have and all the orientation provided to the franchise operator,” he affirms. On average, the initial investment is recovered in two to three years.


    A new Franchise Law proposal will soon be submitted to the Presidential Advisory Staff. The main objective is to guarantee greater security to franchise operators, according to Patricia Mayana, an adviser with the Market Access division of the National Sebrae (Small and Medium Business Advisory Service).


    Under existing law, a business can be transformed into a franchise system immediately after the inauguration of the original establishment.


    The new proposal would only permit this transformation after the business has been inaugurated and functioning for two years.


    “This protects the franchise operator, since one can assume that the business that is being offered as a franchise has had time to mature and achieve market success,” he observed.


    ABr – www.radiobras.gov.br

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazil’s Central Bank Chief Promises Lower Interests

    The president of Brazil’s Central Bank, Henrique Meirelles, says that the higher primary account ...

    Brazil’s Petrobras Wants to Invest More in Colombia

    At a meeting in Bogota on Tuesday, April 19, with the President of Colombia, ...

    Brazil’s Family Planning Offers Condoms to 13 Year Olds

    Saying this will guarantee the sexual and reproductive health rights of the population, yesterday, Brazil’s Ministry ...

    12,000 Brazilian Landless Present Four Demands to Government

    The agribusiness, the orthodox economic policy, and the own nature of the Brazilian State ...

    Brazil Uses Internet to Monitor Environment Projects Across the Nation

    Brazil’s Ministry of Environment has just launched the Agenda 21 System, a technological tool ...

    Mind Straitjacket

    Brazilian scholars ape foreign trends in order to be seen as more up-to-date. This ...

    27% of Brazil’s Youth Do Nothing. They Neither Work Nor Study.

    About a quarter of Brazilians in the 15 to 24 age group neither work nor ...

    Chicken feet

    Brazil’s Rich Foreign Market for Exotic Animal Products

    Brazilian exports of exotic products of animal origin like chicken, turkey and ox testicles ...

    Congressman Names Names in Brazilian Graft Scandal, But Lula’s Party Denies All

    In testimony yesterday before the Ethics Council of the Brazilian Chamber of Deputies, the ...